The Senate has rejected a bill seeking to monitor and regulate the Forex Exchange and Foreign Exchange market in Nigeria.
The bill, sponsored by Senator Sani Musa (APC, Niger East), was thrown out after debates by lawmakers who opposed it.
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The bill, titled “Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353)”, sought to repeal the Foreign Exchange (Monitoring and Miscellaneous Provision) Act, Cap. F34, Laws of the Federation of Nigeria, 2004, and establish a Foreign Exchange Market in Nigeria. Musa stated that the bill aimed to “establish a foreign exchange market, provide for the regulation, monitoring, and supervision of transactions conducted in the market, and contribute to the sound development of the National Economy.”
He added that the bill would also stabilize the value of the currency by ensuring the liberalization of foreign exchange transactions and maintain an equilibrium of the balance of International payments.
Musa explained that the bill would expand Section (1) of the existing Act to incorporate three new provisions to make for clarity and empower the Central Bank of Nigeria to administer, control, and manage all dealings and transactions concerning foreign exchange matters.
“The newly introduced clauses will enable the CBN to determine the basic exchange rate of purchase and sale of foreign exchange,” Musa said.He added that the bill would require authorized dealers to render returns to the CBN on sources of foreign exchange over $10,000 and utilization of same, and obtain prior approval of the CBN when seeking to import foreign currency notes.
The Senate rejected the bill after deliberations, with lawmakers opposing the proposed legislation. The rejection of the bill means that the current regulatory framework for the foreign exchange market in Nigeria will remain in place.
